Is spotify listed on the stock market

Is spotify listed on the stock market

By: omut Date of post: 28.06.2017
is spotify listed on the stock market

Here's a smart idea: If you have a startup and you want your investors to get as much as they can for their shares, consider listing your stock without an IPO. The next day, those institutional investors sell those shares on an open exchange like the New York Stock Exchange. This is when regular folks can buy shares, but at a higher price than the IPO.

The pop also comes since the institutional investors should get a return for the risk they took in the IPO.

So you could argue the pop was bad for the early owners of Snap. They left 41 percent on the table.

is spotify listed on the stock market

So you could see how Spotify CEO Daniel Ek might not want to go through the IPO process. Why give all that money to brokers and big funds instead of to people who own Spotify, like his investors, his employees and Ek himself? Instead, by listing directly, Spotify can skip the IPO pricing altogether and just sell shares on an open exchange.

You can see the appeal to Ek. But there is a rationale for the IPO process, too. That assures the company will get something for its shares while also stoking interest in the open market.

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Underwriters like Goldman Sachs are paid as much as 7 percent to 8 percent commission for their work, but companies can negotiate that down. In the case of Snap, it was about 2. An earlier version of this story incorrectly outlined how institutional investors sell shares on open exchange. Sign up for our Recode Daily newsletter to get the top tech and business news stories delivered to your inbox. Log In or Sign Up Log In Sign Up. Trending Topics Commerce Drones Enterprise.

Spotify, valued at $13 billion, to launch direct listing on NYSE: sources | Reuters

Kara Swisher Dan Frommer Peter Kafka Edmund Lee Walt Mossberg. Johana Bhuiyan Jason Del Rey April Glaser Eric Johnson.

Can You Hear the Music? Spotify Dances Towards IPO | Investopedia

Rani Molla Tony Romm Tess Townsend Kurt Wagner. Subscribe to the Recode newsletter Sign up for our Recode Daily newsletter to get the top tech and business news stories delivered to your inbox. By signing up you agree to our terms of use.

is spotify listed on the stock market

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